Straits Times Index broke out of key resistance of 3270

At last, the Straits Time Index managed to secure a more sustainable bullish movement after months of sideways movement. The key catalyst for the bullish movements was triggered by Yellen’s comment on US economy and the potential of future interest rate hikes. This drew positive sentiments in the market. This strong bullish movement only came about on Thursday, right after the speech by Yellen on Wednesday night. In the early week, market participants were cautious and were seen exiting the market; reaching a low of 3196 level. This selling pressure was being countered by strong movements on Friday. This strong movement broke STI’s sideway’s high of 3275 level. Hence, breaking out of the sideways range, leading to close at 3287.43 level with 58.42pts up for the week.